A client has a separate sales group for its largest “preferred” customers, a select group of customers who normally make purchases in excess of $ 250,000 and often have accounts receivable balances in excess of $ 1 million. Which of the following audit procedures would the auditor most likely perform?
a. Prepare a schedule of purchases and payments for these customers.
b. Send out negative confirmations on a large sample of these customers.
c. Inquire of the sales manager regarding the accounts receivable terms.
d. Send out positive confirmations on a large sample of these customers.